Which of the Following Statements Is CORRECT, Assuming Positive Interest

question 111

Multiple Choice

Which of the following statements is CORRECT, assuming positive interest rates and holding other things constant?

• A) Banks A and B offer the same nominal annual rate of interest, but A pays interest quarterly and B pays semiannually.Deposits in Bank B will provide the higher future value if you leave your funds on deposit.
• B) The present value of a 5-year, $250 annuity due will be lower than the PV of a similar ordinary annuity.
• C) A 30-year, $150,000 amortized mortgage will have larger monthly payments than an otherwise similar 20-year mortgage.
• D) A bank loan's nominal interest rate will always be equal to or greater than its effective annual rate.
• E) If an investment pays 10% interest, compounded quarterly, its effective annual rate will be greater than 10%.

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Definitions:

Bimanual

Involving or requiring the use of both hands, often used in medical examinations and procedures.

Rectovaginal

Pertaining to both the rectum and vagina, often used in the context of rectovaginal fistula, an abnormal connection between the rectum and vagina.

Hysterectomy

Surgical removal of the uterus, which may also involve removal of the cervix, ovaries, fallopian tubes, and other surrounding structures.

Cervical Cancer

A type of cancer that occurs in the cells of the cervix - the lower part of the uterus that connects to the vagina.